By Patrick Gower
The Hobbit dispute started with the actors threatening a boycott over working conditions – that has been put on hold, but the producers Warner Brothers are now at the negotiating table, and will be looking at ways to sweeten the deal.
One way of doing that is through tax breaks: over $230.8 million has been given back to movie makers in the past five years.
But the Prime Minister is ready to play hardball.
If you want to know what's happening with The Hobbit – just ask Gollum; actor Andy Serkis is clear – it will be filmed here.
“I think it’s all being resolved, there are lots and lots of talks, it’s being resolved,” he says.
But Government ministers still have a role to play.
“Well I'm not auditioning – contrary to rumour,” says Gerry Brownlee.
The real audition is about keeping The Hobbit’s producers happy – and that could mean giving Warner Brothers better tax breaks to stay.
“I don't think we should be doing our negotiations through the media,” Mr Key said today.
While The Lord of the Rings trilogy was being filmed, $650 million was spent in New Zealand; those movies received tax breaks of a value unknown – but sources estimate them at $200 million.
Sir Peter Jackson's other high-profile films have seen around $500 million spent here.
They got $65 million dollars back from the taxpayer.
Other movie-makers get it too: Avatar saw $281 million spent - and got $42 million back.
The Hobbit could be given more, but Mr Key was prepared to play hardball.
“If it comes to a bidding war – then New Zealand is out because I don't think that's the right way for us to run this,” he says.
“They have had a long history here, they've successfully made movies here and we don't want to be renegotiating with every single producer that comes to New Zealand.”
It was the actors’ union attempts at negotiations that started this, and leader Simon Whipp has finally broken his silence.
He says "don't blame me" – darker forces were at work.
"I think Mr Key has made it clear what Warner might want and that's something from the Government and that's something he can give," Mr Whipp says.
“I don't really care about Simon Whipp,” Mr Key says.
And it seems Mr Whipp – an Australian – doesn't really care about New Zealand either.
He says he will feel no guilt if the movie isn’t made in New Zealand.
But the where the film is made is now well out of Mr Whipp's hands.
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